Ramat Gan, Israel-based Earlysense will receive licensing for all intellectual property and technology sold to Chicago-based Hillrom for use outside the hospital along with $30 million in cash, commercial milestone payments and a portion of Hillrom's equity investment.
Earlysense CEO Matt Johnson told BioWorld that the technology acquisition is a global deal.
"The COVID-19 pandemic has created historic opportunities for smart health technologies outside the hospital, and this transaction will allow us to continue serving our global customer base and apply our clinically proven technology to this high-growth sector,” said Johnson.
Hillrom said it will integrate Earlysense's contact-free continuous monitoring and analytics technology into its Centrella Smart+ med-surg bed and ecosystem of connected devices.
“As it relates to Hillrom, the Earlysense technology is integrated into their Centrella Smart+ Bed,” said Johnson. “Our technology has already monitored more than 1 million patients and helped clinicians save tens of thousands of lives, and we expect to accelerate this significant impact as a result of this technology sale to Hillrom.”
At a rate of more than 100 times per minute, Earlysense’s technology allows for the continuous monitoring of patient heart and respiratory rates without increasing the risk of harmful infection.
It also alerts clinicians to potential patient deterioration events much earlier than traditional monitoring methods. This technology serves as the engine for Earlysense’s remote patient monitoring devices, which brings hospital-grade patient analytics to care settings outside health care institutions.
“We give caregivers an early warning of a patient who will need their help. Utilizing piezoelectric technology integrated into a membrane plate, the Earlysense sensor detects mechanical vibrations from the patient,” said Johnson.
The sensor collects the signal and the system algorithms analyze it to extract important indicators, such as heart rate, respiration rate, movement and bed exit.
“By continuously monitoring the patient's heart and respiration rate trends we allow early detection of patient deterioration, thus giving their caregivers advance warning and time to intervene,” said Johnson.
According to Hillrom, clinical research has demonstrated that up to 17% of inpatient admissions experience clinical deterioration. These warning signs can often be caught through contact-free continuous monitoring technology six to eight hours before deterioration events occur, much earlier than traditional monitoring methods.
Early identification of clinical deterioration has led to improved survival, decreased costs, and decreased need for higher acuity settings.
"Earlysense's contact-free continuous monitoring technology provides caregivers with a full picture of patient health, allowing for intervention at the earliest signs of patient deterioration," said John Groetelaars, the president and CEO of Hillrom.
Wells Fargo Securities served as exclusive financial advisor to Earlysense and Goldfarb & Seligman and Polsinelli served as legal counsel.
Hillrom and Earlysense have a history of collaboration. In 2019, Hilrom was one of the big sources of funds for a $39 million financing round Earlysense completed. Earlier that year, Hillrom acquired Breathe Technologies Inc. in a $130 million deal.
Earlysense also has plans for the Asian market, particularly in Japan. Outside of the Hillrom relationship, Earlysense works with its partners to deploy product into their various care settings.
“We have two major Asian partners, one of which is our beta partner for our new remote patient management platform. This partner provides care for thousands of elderly people in Japan's senior care homes. By utilizing Earlysense technology, our partner helps them live safer, happier, healthier lives right in their own homes,” said Johnson.
“Another Asian partner is using our technology to investigate how Japanese employees are affected by overwork and lack of sleep. We believe their work is critically important and may have broad implications to the sleep-tech space and employees across the globe.”
Earlysense declined to disclose the name of its Asian partners but the company now plans to focus on post-acute remote patient care, which is growing dramatically and has experienced widespread acceptance and momentum in the market due to the COVID-19 pandemic.
“We are fully focused on the remote care space, which is experiencing rapid growth. The trend of health care moving away from hospitals and into homes was accelerated with the onset of COVID-19,” said Johnson. “Since our technology is contact-free, we are an ideal solution for a remote care deployment. Additionally, Earlysense is rapidly advancing our AI capabilities and investigating additional contact-free solutions.”